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Vliv Přímých Zahraničních Investic Na Dodavatelské Vztahy A Postavení Domácích Výrobců Meziproduktů
[FDI’s Impact on Inter-industry Interactions among Domestic Suppliers of Intermediate Goods]

Listed author(s):
  • Jan Hanousek
  • Evžen Kočenda
  • Pavla Vozárová

In this paper, we analyze the extent of the impact of FDI on the host economy according to theoretical predictions. Within a broader context of international trade flows, we focus on interindustry interactions between a multinational enterprise (MNE) that enters the domestic market and other firms in the economy. We seek to determine if the MNE uses domestic suppliers of intermediate goods or if it purchases its supplies from abroad or from other MNEs entering the downstream sector. Our analysis covers both Western and Eastern European countries over the period 2001-2007. Our results show that FDI increases the demand for intermediary goods. However, domestic producers of these goods can benefit only partially from this positive shock, since they are at the same time crowded-out by MNEs entering the upstream sector as well as by importers.

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Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2017 (2017)
Issue (Month): 4 ()
Pages: 391-409

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Handle: RePEc:prg:jnlpol:v:2017:y:2017:i:4:id:1151:p:391-409
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  1. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
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